24.11.08 Fuel prices to rise as motorist hit with 2p duty increase

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11162 comments 50282 votes

Do you think the government should cut fuel tax instead of making motorists foot the bill for the credit crisis?


A permanent 2p duty increase in fuel tax has been introduced in the pre-budget report, which despite being presented as revenue neutral, will mean that fuel prices will rise over the next year and beyond.

The move to increase fuel duty by 2p has been introduced to offset the rate cut in VAT from 17.5% to 15%. However, although the VAT holiday will last 13 months, the 2p duty rise is permanent.

When VAT returns to 17.5% motorists will still be paying the higher rate fuel tax of 52.35p per litre and the higher rate VAT, making tax 74% of the total cost of a litre of fuel, and instantly boosting the cost of fuel by 2p a litre.

If the Chancellor had instead announced scrapping duty and VAT, a litre of petrol would cost just 25p.

The changes are designed to be neutral, but calculations by PetrolPrices.com show that there will be a slight increase at the pumps of 0.4p a litre, or 20p per average 50 litre tank of unleaded when the changes come into effect on December 1st. The fact that fuel prices will increase at all is contrary to the message from the Chancellor that the changes will be revenue neutral.

Motorists and businesses will effectively be bearing the brunt of the costs involved with implementing changes to help the UK as it heads into a recession.

Fuel is taxed twice – a fixed duty and percentage VAT. The changes mean that the fuel duty will be 52.35p per litre and VAT will be 15% from the 1st December.

Do you think the Chancellor did the right thing? Is it fair to make motorists foot the bill for the cost of reducing VAT? Should we have VAT on fuel at all?

Your Comments

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More stealth tax increases to burden the motorist....

Posted by Alistair Laing, 25th November 2008 7:56am

The government should abolish stamp duty, then people could afford to move house more often and buy a house nearer to their wok place. This plus good public transport would reduce costs and the amount of people on the road in rush hours.

Posted by Steve Simmonds, 25th November 2008 7:56am

its about time that all those illegal drivers without ins, car tax were included in this as well. the government should consider introducing a credit card size tcat tax paid and fully insured type of licence which has to be validated by the passport office then to access fuel it has to be read by a PIN Machine to ellow fuel to be bought in the normal way. if all the illegal drivers were captured in this way I think the prices would come down even further and us long suffering legal drivers would get the benefits of lower priced fuel.

Posted by Claire Vincent, 25th November 2008 7:56am

When will this government learn to live within their means - they put less than £20 billion into the economy yet increase borrowing to £118 billion by mid 2010. The Labour government is broke and they keep spending to put off the evil hour - It has to come sooner or later.

Posted by Norman Webster, 25th November 2008 7:56am

I suppose we should have expected this, the government is renowned for giving with one hand and taking with the other.
I noticed a few people mentioning we should reduce our driving and take public transport where possible. Well that is fine in the city, but out in the rural regions it is not possible, especially whe my wife works in one direction, and I work in another. I suppose on an up not both my wife and I pick people up on our way into work, and so in a small way we do our bit to help reduce fuel usage overall, but it doesnt help our pocket.

Posted by Adyshaw, 25th November 2008 7:56am

typical, just typical, if your in the 20% to 80% of the public who are "normal" look out as usual!

Posted by Ian Evans, 25th November 2008 7:57am

Well the petrol companies have been taking the mickey for a long time!
Why shouldn't the government.
They should have put road fund on petrol & DERV so the users that use the roads the most pay the most!

Posted by Ian Mcneil, 25th November 2008 7:57am

Clowns in the circus of paliament, juggling the books, but who's laughing? certainly not the motorist! The world has been mis-managed by the leaders, credit crunch is proof. I say Labour, level the playing field in UK by reducing tax on fuel and let britain live a little, keep motorists happy, they may vote for you again later?

Posted by Guy, 25th November 2008 7:57am

A typical Labour governmental ploy!

The sooner this lot are sent to the wall the better, not that their successors are likely to be much better.

Is there a party that will work to get us out of the EU and restore sanity to central government within the UK.

If so I'll vote for it in advance.

Posted by Trevor Durbidge, 25th November 2008 7:57am

I work in local government and they are never quick to adjust our fuel allowance. Also has anyone commented 2.5% is not a lot to drive an increase in spending but we cannot go below 15% thanks a lot Europe!

Posted by Sapper, 25th November 2008 7:57am

I thought the government wanted to get the economy moving - how can they justify this then? What about haulage companies and every firm who uses transportation - it all ends up as a knock on effect to the consumer.

Posted by Sarah Beech, 25th November 2008 7:57am

When one considers that most of our food (if not all) moved around the country by road; i beggars belief that this Chancellor can be so short sighted as toreally only apply a cosmetic approach to the problem.
Bring back the fuel protests and hold this Government to account. It worked last time!!

Posted by Patrick Thomson, 25th November 2008 7:57am

I am totally fed up with the way this country is going! I HAVE to drive 80 miles per day and recently its been even harder, just as the prices start to go down, they are going back up! They pretend they are helping the people who get up and go to work! I dont see it like that, I see it like I would be better off claiming benefits with the amount I have to spend just to survive day to day. That isnt a good thing for this country, why cant they see it!!!???

Posted by Francesca Lewis, 25th November 2008 7:57am

Every financial advisor would tell you "Do NOT borrow more to get you out of financial difficulties", solabour in their extreme wisdom are going to borrow even more billions!!!!!!!!!!!!!!

Posted by Tony Slater, 25th November 2008 7:57am

Gordon Brown and the government need to be given an average middle-lower class family's wage to see how they cope for 6 months in the current economic crisis, then they'll see what Joe-Public are actually dealing with.

Posted by Nadine Lindsay, 25th November 2008 7:57am

Yes, it's typical of this government - another knee jerk reaction which will have minimal overall effect on the mess we're in. The motorist is considered an 'easy' target so we get hammered yet again.

Posted by Diana Round, 25th November 2008 7:57am

As always the motorist gets it in the neck! the roads round here are awful,potholes and blocked drains, no gritters at all at the weekend in the snow and ice. I wouldn't mind if I thought anything was going to be better!

Posted by Maggie Smith, 25th November 2008 7:57am

Well, am not chuffed about the fuel increase, but I remember life under Dictator Thatcher, and it was no flaming picnic

Posted by Brunhilde, 25th November 2008 7:58am

Once again the government are treating us like fools. Do they realy think we will be fooled by this supposed giveaway.

the sooner we force an election and get rid of this bloated government the sooner we can start getting money back in our own pockets.

They would have done better cutting the duty on diesel to make it the same price as petrol.

Posted by Derek Bright, 25th November 2008 7:58am

Typical Labour Government proposal take off some VAT temporarily and add a permenant Tax to compensate the VAT will go back on at some point but you can bet your bottom doller the 2p Tax rise will stay on.

Eddie

Posted by Eddie Cliffe, 25th November 2008 7:58am

Typical labour. Smoke mirrors and endless spin.

Posted by Davi Garman, 25th November 2008 7:58am

Most if not all retailers will fail to pass on the VAT reduction to consumers, and of course they will get away with it, however; we can all rest assured that every fuel supplier will add the fuel increase to their prices, as always we, the consumers will get hit where it hurts most, in our pockets.

Posted by John Wall, 25th November 2008 7:58am

Leave it well alone - the VAT changes will make no difference to anyone - unless you are buying a costly item - and who can afford those. High earners will be driven out of the country in two years, middle income will carrry on as they are at present and yet again those on a lower wage will be penalised - the whole sad scenarion could have been eased by giving the low earners a tax break again - then they would have had more money in their pockets to spend.

Posted by William Cassie, 25th November 2008 7:58am

I find it very interesting how people blame government for their own greed of have now, pay later. In the "old" days, people used to save money to buy things. We are heading back to that. I keep up with the "Joneses" on a 12 month delay with no debt whatsoever!! Ha Ha!!

Posted by Simon Ludlow, 25th November 2008 7:58am

One of the largest expensive any houshold has is running their car and the additional 2p on fuel will result in cancelling out the vat reduction and leave us all with no extra cash either to pay down debt or spend more.

Posted by John Biddle, 25th November 2008 7:58am

AS always you are never better off after a Budget or for that matter by anything this Government does - everyone will therefore pay more if they have increased Duty on road fuel AGAIN. So no change there!!!

Posted by Norman Walker, 25th November 2008 7:58am

If Gordon Brown and his predecessor had had a few more socialist bones in their bodies then we might have seen a slightly more even distribution of wealth. I am not promoting communism, far from it. But what we have here is fundamentally a fashcist dictatorship.

Let's stop meessing about will online poll and petitions - they're convenient for politicians as they don't have to do anything. Two million motorists descending upon Downing Street would be certain to provoke a reaction

Posted by Paul Anderson, 25th November 2008 7:58am

Thank you drinkers, drivers and smokers. If you didn't exist I don't know who would pay the taxes that this and previous governments have or will squander on ill fated computer projects, Millenium Dome, 2012 Olympic Games etc.

Why can't all the fat cats and companies just pay their share of tax instead of employing armies of accountants to find ways of avoiding paying tax?

Posted by Brian Bell, 25th November 2008 7:58am

Uk fuel prices should be in line with Europe.
Diesel should be cheaper, it is only because the tax on it is calculated using home heating oil calculations, sort it out

Posted by Mike Simpson, 25th November 2008 7:58am


While I agree that the tinkering does mean an increase in fuel in real terms I believe the big problem to be the fact that the retailers have not passed on the true price cuts to the motorist. I think this is disgraceful and Government should set up some kind of body to investigate. We are being ripped off big time, fuel should be at least 10p /litre less than it is. These guys are getting rich at the expense of all of us who drive or use oil to heat our homes.

Posted by Matthew, 25th November 2008 7:58am

I really don't know what the British public are moaning about!!! You will all be abjectly stupid enough to vote back into power this gross government for a further 4 years of mental and intellectual horror. I have never in all of my 76 years, found such a switched off electorate as this one. When I think back over all the mess-ups this government have made over the last 5 years, I am amazed that we havn't had a wholesale march on parliament to throw this abject lot out on its Stalinist ear. Once again the softest lot, the motorist, has been taken to the cleaners (as usual!)--when are we going to learn?

Posted by Ron Johnson, 25th November 2008 7:58am

One word sums them up....IDIOTS!

Posted by Mark Howard Cowmeardow, 25th November 2008 7:59am

Everyone blames labour for the tax on fuel but it doesn't matter which party is in power...The Conservatives won't reduce fuel tax either so don't imagine that things will improve if they get in, they all do the same thing, give in one hand and take with the other.

Posted by M Foster, 25th November 2008 7:59am

It is the usual Brown approach (yes, he is still Chancellor).
Use the nonsensical VAT reduction as the headline and then increase the fuel tax!
The biggest contribution to our economy would be a drastic reduction in the tax on fuel.
"Every knows"- as Gordon always says- that the cost of fuel affects everything. If he had simply taken that one measure, then everyone would have received large benefits. It would have reduced industry's costs and made them more competitive and reduced unemployment, cut costs for the NHS, councils, etc and reduced retail prices.
Just that one measure would have achieved far more than all the fiddling.

Posted by Tom Austin, 25th November 2008 7:59am

I think labour should go!
They are not thinking about every day people who work every day just to get a liitle bit extra for there family then take it off them in the other hand! it wrong why are they getting away with it for so long!!!!!

Posted by Angie Aubrey, 25th November 2008 7:59am

It's typical of todays politicians. Always trying to kid you that they care!!

Posted by Christopher Feeley, 25th November 2008 7:59am

This labour goverment have made me worst off since they came to power in 1997. I'm single and have no help what so ever from them. Now they put my fuel up again, which is essensial as there is no public transport to where I work. They are to busy giving the money to people who don't want to work...........

Posted by Tina Ashcroft, 25th November 2008 7:59am

It is always the same with the Labour government, they treat us like twits. Don't they realise that we can see straight through their plans and immediately know that the percentage of people that they actually help is minimal. Whereas those individuals that is adversly effects is considerable including businesses. I thought they were trying to help the economy! All very well reducing VAT if we can't afford to fill the car with fuel to get to the shops!

Posted by Jane Alicia Folds, 25th November 2008 7:59am

i wonder how people that are in coverment would cope if they lived in the real world in stead of micheal jacksons nether world that they live in
now that would be worth paying for to watch them strugle along from day to day & watching them drop out one by one.....be better than any im a celb get me out of hear programs.....ha! ha! ha!
they just havnt a clue
mind you when your on the money there on why would YOU worry about it
& to think we pay these people a wage so they can do the things they do to use
makes you wonder whos the idiot
them or use
worth a thought aint it
ANSEWRS ON A POST CARD TO 10 DOWNING STREET.....

Posted by Kevin, 25th November 2008 7:59am

This Goverment cant seem to see the simple solution ! Cut tax on fuel so that the price of petrol and diesel can come down, which in turn leads too good hard working folk having extra money in there pockets who will then be able to spend there extra cash in shops. VAT tax cut is laughable Darling you are an idiot like your Boss.

Posted by Paul Todd, 25th November 2008 7:59am

This government is proving by every move it makes that it is a government of incompetents. I would also like to add that, as far as I am concerned, they are a collection of hypocrites.

Posted by Sidney Skinner, 25th November 2008 7:59am

This is not so much about petrol as management. This government(?) has not managed our economy in any organised sense that we recognise. It has been run by a man who decides what to spend his money on (usually health and education) and raises taxes accordingly. The fact that there has been a negative return from both sectors usually means even more money being invested (but both are vote getters).
Unlike business there has been no long term strategic thinking - which should have meant investment in power or transport.
Or financial prudence and oversight.
But what do you expect from people who have never done a proper days work in their lives - just been party workers.
Alas

Posted by David Jaundrell, 25th November 2008 8:00am

as usual the govenment give with one hand and take with TWO HANDS.
The motorist being the easy target as majority of motorists would find it almost impossible to exist without their transport!

Posted by D R Shearcroft, 25th November 2008 8:00am

The government knows that driving is a necessity for us workers and not a nice to have. Therefore they treat us as a cash cow as we have no choice but to pay their relentless bleeding taxes.

Posted by Richard Swinney, 25th November 2008 8:00am

At least D*ck Turpin the Highwayman wore a mask !!!

Posted by John Flynn, 25th November 2008 8:00am

Most people who work anti-social shifts need their cars to get to work, are the goverment hoping that increasing the fuel duty again will encourage people to use public transport. In some area's this is not possible, and another tax increase on fuel will only make some families struggle even more in these turbulent times.

As one other person wrote give with one hand and take back with the other.

Paul

Posted by Paul Wilson, 25th November 2008 8:00am

It makes not just me but clearly the rest of us very very angry that the working class, pensioners in rurual areas and the disabled pay even more for petrol and diesel. Now my point is this why is diesel so dame exspensive compared to the price it was this time last year when crude oil was around $50 dollers a barrel it say around 12p to 15p more exspensive JOKE we are being ripped off by the goverment and oil companies alike you only have to look at gas and electric prices my gas was increased on october 2nd by 31.9% for the third time this year even though crude oil prices was plummeting ANGER IS ONLY A LIGHT WORD I WILL USE BUT I'M SURE YOU WILL ALL AGREE WITH ME THE RICH GET RICHER AND WELL YOU CAN WORK OUT THE REST.

Posted by Trevor', 25th November 2008 8:00am

Lets start making the high mileage users pay for the roads by lowering the road tax and putting the difference on fuel. That way it is a greater incentive to get a more efficient vehicle rather than a (in most cases a company paid for) gas guzzler.

Posted by Kevin Cooke, 25th November 2008 8:00am

A typical Labour government - give with one hand and take away with the other.

Nothing changes and probably never will. The VAT rate cut will make so little difference to the average man on the street in terms of spending power - £2.50 in every £100 - Wow what a saving!

Posted by Judy Baker, 25th November 2008 8:00am

As per usual, Labour stealth has come into force. Does Mr Darling really think all of us are stupid? We all have the chance to end this Richard Turpin and his croanies...............Get them out at the next election!!! Why we ever let them in the first place, is beyond me. Did we not learn from the last and every time Labour tries to Govern our country????

Posted by Ashley Stjohn, 25th November 2008 8:00am

True to form
A gready crooked govenment running the country into the ground.
Mugabi comes to mind minus the killing, [Just let the pensioners Die of cold and starvation quietly.]
Reduce the fuel duty get Diesel below the £1.00 threshold, and cut he VAT on heating oil and the utilities.
Stop Screw**g the honest working TAX paying Enlishman.
Bring on the Grey Revolt.

Posted by Mark Deane, 25th November 2008 8:00am

So the chancellor yet again robs the poor to placate the rich

Posted by Anne Thom, 25th November 2008 8:00am

Another typical government con.

Reduce VAT by a meagre 2.5% to encourage a spending spree - inflate the price of fuel and effectively increase the cost of everything in the shops.

How does that work then?

Pity we can't get away from a consumer led economy and back to actually manufacturing something that the world wants.

So it's a Merry Christmas to you Brown & Darling

Posted by Russell Cartlidge, 25th November 2008 8:00am

As the cost of fuel affects everyone regardless of whether they actually own a car and it has such a knock on effect for all the trade in this country it seems ridiculous to be doing anything which will raise the actual cost of fuel.

Posted by Michelle Waskett, 25th November 2008 8:00am

As someone who bought a Diesel car I am particualrly annoyed at the price differential between Petrol and Diesel. A few years ago the government forced the producers to reduce the price of Diesel so it was around 5p lower then petrol. It was allowed to creep up and now is around 14p a litre dearer than petrol.

Posted by David Johnson, 25th November 2008 8:01am

Well - we certainly won't be influenced to spend by a marginal £2.50 in every hundred. Our main expenditure is food, so no gain there, and we don't "consume" - sorry for that, but we live perfectly acceptable lives without constantly spending money on increasingly useless products.

We try to live in the real world, where all people have one planet to supply their needs - the rate at which global capitalism wants us to spend in the UK means that, if everyone in the world consumed at that rate, we'd need 3 planets (at the US rate, it's 5 planets) - can one of these clever chaps tell me where the other planets are going to come from?

Posted by John Bamford, 25th November 2008 8:01am

This money grabbing government is so anti-motorist. They think that because we have a car we must have a bottomless wallet.

Posted by Jonwom, 25th November 2008 8:01am

Same old, same old. Nothing ever changes. A two year old could come up with this tired act of robbing Peter to pay Paul. Know that this government has managed to shoot it's self in both feet & stopped virtually all revenue from smoking & alcohol leaving only road fuel to target, I don't think that any body with an ounce of common sense can believe this introduction will make make a blind bit of difference to the mess we have found our selves in.

Posted by Mel, 25th November 2008 8:01am

Gordon Brown is going to bankrupt the country to save his skin...

Posted by Dmarsh, 25th November 2008 8:01am

the answer is very simple. at the next election vote against labour and ensure that Gordon Brown and his merry men of highway robbers are put out of a job.

Posted by Andrew Mo, 25th November 2008 8:01am

I run a small txi company and our petrol bill increased by 30% during the summer. We couldn't increase our prices as we had to stay in competition with all the other local firms. I was looking forward to enjoying to seeing prices fall. Its typical that the labour government cannot help the ordinary people of the country who are trying to get by day to day trying to make ends meet. Gordon Brown is running this country into the ground and I don't think the alternatives are much better.

Posted by Lee Rostron, 25th November 2008 8:01am

The sooner this damned Labour Govt is voted out, the better. They are completely useless at housekeeping. You can't spend what you don't have and why the hell are we all having to pay for the mistakes of 'city fat cats' still getting rediculous bonuses. They should ALL hang their heads in shame. This is a digustingly two faced 'early budget'. 2.5% temporary VAT reduction will NEVER work and will cost us, the people and small business owners a small fortune in a time when every penny counts to keep our heads afloat. Idiots in power who have never worked a real day in their lives or tried to run a business with their own money are making disastrous decisions for the rest of us. We should be able to tax THEM for this and all their other greedy mistakes. This won't help us, as motorists, either. They talk out of their backsides about wanting to help us. Petrol is ludicrously expensive in this country and they should stop taxing us in every which way they can. I feel like emigrating - but to where that's got a Govt that really works and cares about the people who pay their salaries!

Posted by Helen, 25th November 2008 8:01am

Nice one Mr Darling. Same old, same old B......t baffles Brains! But let's face it, we had the party, now we have to clean up after ourselves. Problem is that it's not all of us that have made the mess but will have to pay the cleaners!

Posted by Sue Garwood, 25th November 2008 8:01am

The government should have left the fuel situation as it was. Prices will rise anyway and they will then get the VAT back. Most people are worried about paying their fuel bills. I am a student and am stuggling with the petrol prices. Public transport is not good enough.

Posted by Hilary Cook, 25th November 2008 8:01am

My I first say how grateful I am to the Goverment taking what few spare pounds that i have had left. Why is it they seem to wont to bleed us dry at every opertunity? Plus the fuel companies are just profitteering crude as come down to below $50 a barrel so why are we still paying £1.06 per litre for diesel?

Posted by D Cooper, 25th November 2008 8:01am

Yet again the motorists gets hit in the pocket, as a disabled driver who has a disabled partner we need the use of or car as we both are unable to use public transport.

I was just getting used to paying under the pound for a litre and then low and behold we motorist have to help bail out a government who has made a complete pigs ear of the financial crisis.

Over the years my partner and I have paid more than our far share of taxes to the government in one form or another and enough is enough...why don't the MP's cut their outlandish overheads that they charge the tax payer and make this country a proud place to live in again...... cause at the moment we are quickly heading towards being a third world country...

So come on Mr Brown get your head out of your backside and come and live in the real world of people who are trying to make ends meet, instead of swanning of to the four corners of the world.....

Posted by Phil Smith, 25th November 2008 8:01am

rob peter to pay paul thats all they do and the poor suffer

Posted by P Chafer, 25th November 2008 8:01am

I live and work in a rural area where a car is vital. I have to travel 3 miles to my nearest petrol station which although competitive is not always the cheapest. We do have a bus service but not necessarily when you need it and they are not very reliable. I now drive a Honda CRV as my little fiesta was getting wrecked by the state of the roads. So therefore I am not a happy motorist. The days are gone when my tank was 3/4 full. I now put just enough in to do my regular journey for the week. I really cannot see the government proposals helping me very much at all but then I am no financial expert and something had to be done. The trouble is that we are all reliant on fuel so making it a target to get the VAT back doesnt make sense if thats the case leave VAT as it is!

Posted by Sarah Stapleton, 25th November 2008 8:01am

to REALLY help the public, Alistair should have done something to cut the end price of fuel not increase it.
Fuel is something that every family uses in vast amounts for everyday living and work and is one of the first thing that is felt by everyones pocket.
If he really wants to get people spending he needs to cut the price of fuel so people actually pay less at the pump and maybe THEN spend MORE at the shops!
Vat down by 2.5% means nothing it really only is pennies in real terms

Posted by Shahid, 25th November 2008 8:01am

I agree totally with Ron Johnson!!!! Well put!

Posted by Chris Irgens, 25th November 2008 8:01am

Robin Hood is alive and well taking from the poor and giving to the rich

Posted by Graham Jarvis, 25th November 2008 8:01am

A token gesture off VAT so I can go out and spend! How the hell do I do that when I cannot afford the petrol to put in my car!! Yes 'U' try getting on Public Transport with a ladder and bucket!!

Window Cleaner

Posted by Pj Cobin, 25th November 2008 8:02am

More double dealing masking straightforward theft from UK citizens by one of the most untrustworthy, totalitarian, fascist inspired governments on the planet. If you get the chance - emigrate! The country is finished.

Posted by Geoff, 25th November 2008 8:02am

I travel to work 70 miles a day, in the middle of no where with no public transport available I only have my car to get me there, this costs me £55.00 a week in diesel. My question to the Goverment is why should I be penelised for going to work to feed my family, as far as I am concerned I pay £55.00 a week extra tax.

Posted by Andy Kirby, 25th November 2008 8:02am

If motorists were so concerned about the price of petrol they could save at least 10-15% by driving economicaly.

Posted by Allen, 25th November 2008 8:02am
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